The Maharashtra budget on Thursday proposed to extend VAT exemptions on food articles like rice, wheat and pulses among others for one more year to help control price rise.Finance Minister Sunil Tatkare while presenting the budget for 2010-11 in the Assembly said that despite recommendation from the empowered committee to levy value added tax (VAT) of 4 percent on these goods, the government has decided not to do so in order to keep the prices of these essential items under control.

Tatkare said that he has not proposed any fresh taxes in the revenue deficit budget of Rs 7,654.50 crore. He also said that the concessional VAT rate of 5 percent for raisins, currants and tea will be continued.

The tax relief period for aviation turbine fuel sold at small airports, except Mumbai and Pune, will be continued till March 31, 2011, he said. the state government had reduced VAT on jet fuel to 4 percent to encourage air traffic and improve the connectivity of small airports.

The minister said solar lanterns will be included in the list of equipment working on solar energy which have been exempted from VAT.

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